Economy

FinCEN: Cloud Mining, Escrow Services Aren’t Money Transmitters

"The US Financial Crimes Enforcement Network (FinCEN) has issued new rulings indicating that digital currency-related cloud mining and escrow services should not be considered money transmitters. The two releases came via what appear to be responses to requests from businesses seeking to better understand FinCEN’s policies. FinCEN, the bureau of the US treasury that collects and analyzes financial transactions, has previously released influential decisions regarding how consumer bitcoin miners and bitcoin investors should be regulated under money transmission laws." Continue reading →

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Federal Reserve’s Bitcoin Policy Begins to Take Shape

"On Friday, May 9th, 2014, the Federal Advisory Council and Board of Governors of the Federal Reserve met for their quarterly meeting in Washington D.C. This meeting was historically held in secrecy until Bloomberg News 'won' a Freedom of Information Act request requiring the Fed to make the meetings minutes available to the public. The Fed is pro Bitcoin regulation: 'Regulation is advisable; considerations include protecting consumers, addressing illicit use, and avoiding Balkanization.' In this regards they recommend, 'Regulatory oversight to ensure that exchanges invest in appropriate cyber and other security measures. This includes fully secure storage of Bitcoin wallets.'" Continue reading →

Continue ReadingFederal Reserve’s Bitcoin Policy Begins to Take Shape

Federal Reserve’s Bitcoin Policy Begins to Take Shape

"On Friday, May 9th, 2014, the Federal Advisory Council and Board of Governors of the Federal Reserve met for their quarterly meeting in Washington D.C. This meeting was historically held in secrecy until Bloomberg News 'won' a Freedom of Information Act request requiring the Fed to make the meetings minutes available to the public. The Fed is pro Bitcoin regulation: 'Regulation is advisable; considerations include protecting consumers, addressing illicit use, and avoiding Balkanization.' In this regards they recommend, 'Regulatory oversight to ensure that exchanges invest in appropriate cyber and other security measures. This includes fully secure storage of Bitcoin wallets.'" Continue reading →

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The Successor to Keynes

"The words, 'Brilliant!' 'Ground-breaking!' and 'Visionary!' He recommends: Uniform global taxation; Confiscatory tax on inherited wealth; 15% tax on capital; 80% tax on annual incomes over US$500,000; Enforced transparency on all bank transactions; Overt use of inflation to redistribute wealth downwards. Why didn’t anyone else think o"The words, 'Brilliant!' 'Ground-breaking!' and 'Visionary!' will no doubt be seen in many reviews of Mr. Piketty’s book. He recommends: Uniform global taxation; Confiscatory tax on inherited wealth; 15% tax on capital; 80% tax on annual incomes over US$500,000; Enforced transparency on all bank transactions; Overt use of inflation to redistribute wealth downwards. Why didn’t anyone else think of this brilliant plan? Well actually, they did. In fact, the above is essentially the shopping list of the IMF, the EU, the OECD and, in fact, many of the governments that make up what was formerly described as 'the free world.'" this brilliant plan? Well actually, they did. In fact, the above is essentially the shopping list of the IMF, the EU, the OECD and, in fact, many of the governments that make up what was formerly described as 'the free world.'" Continue reading →

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Bank of Israel’s Fischer, Treasury’s Brainard to push for more activist Fed

"The arrival of former Bank of Israel Governor Stanley Fischer and former U.S. Treasury official Lael Brainard will add two strong voices to back Chair Janet Yellen's view that loose monetary policy needs to be extended to turn around a slack labor market. Fischer intervened directly in Israel's mortgage market to tackle a real estate bubble, while Brainard pushed EU governments hard for more aggressive action from the European Central Bank during the euro zone crisis. Interviews with former colleagues and a review of their public statements also suggest both will want the Fed to remain in activist mode long after its current programs wind down and its bloated balance sheet shrinks." Continue reading →

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Yellen tells graduates: Show grit like Ben Bernanke

"Federal Reserve Chairwoman Janet Yellen on Wednesday delivered what you’d expect from a commencement speech: graduates, she said, should 'tend the fires of curiosity,' listen to others, and show grit in the face of failure. Yellen reminded New York University students in Yankee Stadium that even Babe Ruth, Lou Gehrig and Joe DiMaggio failed most of the time they stepped to the plate, according to a text of her remarks. And what example did Yellen find for such an inspirational beacon of bravery? Why, her predecessor, Ben Bernanke." Continue reading →

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Why Are Bond Yields Falling as Stocks Rally?

"One of the most striking features of 2014 has been falling Treasury yields in the wake of the Fed’s tapering of QE. The standard theory goes that, as the Fed withdraws support for longer-dated bonds, bond prices will drop (as demand falls) and yields (which move inversely to prices) will rise. So much for standard theory… In addition to the divergence between large caps and small caps (which we wrote about here and here), the divergence between falling bond yields and rising large-cap stock prices is another sign that the rally in the S&P 500 and the Dow may not be as strong as some believe." Continue reading →

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Silver Fixing Company to Stop Running London Benchmark

"The company that runs the London silver fixing, a benchmark dating back more than a century, will stop running the process after Deutsche Bank AG said two weeks ago that it was dropping out of the price-setting ritual. The London Silver Market Fixing Ltd. will stop administering the fixing on Aug. 14, it said today in a statement. Regulators have been stepping up their scrutiny of how gold and silver prices are set in the wake of the London interbank offered rate-manipulation scandal. The FCA is visiting member banks involved in the gold fixing as part of its review of gold benchmarks. Deutsche Bank has said it is leaving fixings as it scales back its commodities business." Continue reading →

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Gold Smuggling in India Spikes 446% in Last 12 Months

"As per the report, Directorate of Revenue Intelligence (DRI) had filed 40 gold smuggling cases in the last year whereas it has increased to 148 cases in the past 12 months. The aggregate value of the seized illegal gold from 464 people in 2013-14 is estimated at Rs 245 crore. Most of the gold smugglers are arrested from the nation’s international airports. The customs officials at the Indira Gandhi International Airport said that they have nabbed 353 kg of gold worth at Rs 90 crore in this current financial year whereas it was 20-25 kg of gold in the last year. India had witnessed a dangerous increase of CAD to $88.2 billion which is about 4.7% of the country’s GDP in the year 2012-2013." Continue reading →

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The DOJ’s “Operation Choke Point” Has Driven 30 Industries To Bitcoin

"The DOJ is targeting 30 high-risk industries, as labeled by the Federal Deposit Insurance Corporation (FDIC) in 2011. BitPay has proven to be an incredible ally to the porn industry and has led Bitcoin’s charge into the high chargeback industry. Porn.com and now Verotel both accept Bitcoin using bitpay; both are able to charge lower fees without the risk of chargeback. OKCupid has been using Bitcoin for over a year now… Almost as long as the DOJ has been unintentionally pushing these industries towards Bitcoin. Every industry in the world can benefit from Bitcoin Blockchain technology; it’s just that these 30 have been given a forceful push by the government." Continue reading →

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